The EU has finally approved the trade agreement with the US

On 25 June, the EU Member States gave their final approval to the trade agreement with the US. This is stated in a press release from the European Council.

‘The Council has formally adopted two regulations implementing the tariff-related commitments set out in the EU-US Joint Statement of 21 August 2025. This adoption completes the legislative process and reaffirms the EU’s commitment to stable, predictable and mutually beneficial transatlantic trade relations, whilst maintaining the necessary safeguards to protect European economic interests,” the institution’s statement notes.

European lawmakers have added a number of safeguard measures to the regulation, including granting the European Commission the power to suspend the agreement if the US fails to fulfil its obligations or takes actions that disrupt trade and investment.

The European Parliament has also set an expiry date for the agreement – the end of 2029 – unless it is renewed by then.

Under the agreement, the bloc will remove tariffs on US industrial and certain agricultural goods in exchange for a 15 per cent tariff cap on its exports to the United States.

This move allows the agreement to come into force before the deadline set by US President Donald Trump, who had threatened to impose new tariffs on the EU if no progress was made by 4 July.

As Bloomberg notes, the parties still have unresolved differences regarding US tariffs on goods made from steel and aluminium, as well as EU technical standards, and transatlantic trade relations remain strained.

A spokesperson for the European Commission stated that negotiations with the US administration regarding the extension of the suspension of reciprocal countermeasures are ongoing.

It should be recalled that since the US raised its steel tariffs to 50 per cent (last June), exports of steel products from the EU to the US have fallen by a third, according to EUROFER.